Modern workforce is evolving rapidly, and as it seems, most companies are struggling to update their talent management process to keep up with the changes.
But as you’re probably aware, organizations that aren’t able to keep up with the expectations of modern employees will definitely see a quick decline in employee engagement, retention and subsequently a large decrease in their bottom line.
The State of the Workforce in 2017
The good folks from Teem (formerly EventBoard) conducted a survey of more than 1,300 US workers a couple of months ago, which revealed that around 48% of employees are unhappy at their current jobs – this is actually an 8% increase from their 2016 survey.
Many factors contribute to this state of unhappiness. Some of the major ones include:
- Feeling underappreciated in their workplace (according to 46% of respondents)
- Generally poor work/life balance (according to 48% of respondents)
- Feeling obliged to respond to their co-workers regardless of where and when (according to 49% of respondents)
And what does all of this tell us exactly? Well, the numbers clearly indicate that there’s actually a ton of work for HR professions this year.
So without further ado, let’s take a quick look at some of the biggest challenges the HR department faces this year, and think a bit how to address them properly.
HR Challenge #1: Employee Engagement
For starters, we need to establish why employee engagement is so important. We have three words for you: your bottom line. According to research from The Engagement Institute, disengaged workers cost companies anywhere between 450 and 550 million dollar every year.
So how can you create a culture of engagement within your organization? According to a 2015 Society for Human Resources Management survey, 75% of employees agree that respectfully treating workers at all levels is the number one driver of engagement.
HR Challenge #2: Company Culture
Millennial employees (and young workers in general) have different expectations than their predecessors – they don’t actually want to sit behind a desk, staring at the computer all day. They actually want a company that offers perks such as flexible hours, clear objectives and meaningful tasks.
Organizations that fail to fulfill at least some of these demands and create an enjoyable workplace culture for younger employees will be struggling to find suitable employees. So it’s no wonder why, according to Virgin Pulse, more than 80% of business plan to work on their corporate culture in 2017.
HR Challenge #3: Lack of Leadership
And speaking of company culture, according to a recent survey conducted by CultureIQ, more than 80% of organizations believe that executive leadership is the main drive company culture. But the problem is that top executive positions are currently experiencing the highest turnover levels.
To fight off this problem, HR leaders need to start communicating more with the current leaders and start developing a plan to train new leaders, as old ones are replaced. This is, of course, easier said than done, but HR leaders have to be aware that the future of their organization may depend on these pre-emptive measures.
HR Challenge #4: Attracting Top Talent
Attracting cream-of-the-crop talent is one of the biggest HR challenges for one simple reason – finding quality workers is seemingly harder than ever. In fact, according to RandStand research, more than 80% of HR professionals believe that their organizations will be affected by the lack of talent in 2017.
So in order to attract the top employees, companies need to ensure that they have a good reputation in the job marketplace. In addition, it would be wise to enlist the help of companies that offer quality recruitment services that can help you establish your company as an employer of choice.
Today, we have four generations in our workplace, so it’s understandable that some companies are struggling to create an environment that appeals to people with different assumptions, preferences and needs.
Some organizations pay relatively little attention to their culture, despite its importance. However, it’s been proven that actively developing and managing company culture can and will improve employee satisfaction, retention and performance and allow your company to grow accordingly.